It is necessary to build a new federative pact between the Union and the States, sponsored by the STF and approved by the National Congress
A hecatomb in state and municipal finances is expected from 2023. On the one hand, salary plans have been approved in National Congress, plus 80 flooring projects in progress. On the other hand, there has been a brutal and unplanned cut in the income of these entities. The objective is not to evaluate the legitimacy of the acts, but to signal that the account is not closed.
In June 2022, the federal executive passed two complementary laws (LC). LC 192 obliges the States to charge fuel to the ICMS in a single phase, with a rate per liter (ad rem) and unique in Brazil. LC 194 stipulates that fuel, communications, electricity and public transport will now have an ICMS rate of 18% and no more than 30%. Permanent annual losses for the 27 entities are in the order of BRL 100 billion as of July 2022.
Furthermore, the dispute on the incidence of the Tusd and Tust tariffs on the basis of the calculation of electricity was included in LC 194, which will lead to further permanent annual losses of R$ 34 billion. Finally, there is Difal, which, for 2022, will cause an extra loss of 13 billion reais.
After 16 states have prosecuted and have favorable injunctions, the Minister Gilmar MendesFrom Federal Supreme Court (STF), gave the deadline to 1/4/2023 for the Union and the States to reach an agreement. In addition to Tusd/Tust and Difal, there is the “non-essentiality” of petrol. As these three issues do no harm to the national treasury, states expect the support of Finance Minister Fernando Haddad, who served as a partner, as well as the 27 governors who were empathetic about the CARF tie-in vote.
The only item weighing on the Union concerns the compensation relating to State losses deriving from LC 194 limited to the period July-December 2022. From 2023 the losses will be permanent and without compensation.
The States therefore aim to have favorable agreements on the “non-essentiality” of petrol and Tust/Tusd, and to guarantee some cash (Difal and compensation), to minimize permanent structural losses.
There is therefore the desire to seal a new federative pact, starting with an agreement between the Union and the States, sponsored by the STF and approved by the National Congress. Furthermore, and most importantly, we must reflect on the level of spending and taxation we want to have and, with that, design a tax reform that translates this social desire. As fiscal responsibility precedes social responsibility, as the vulnerable need the state, and as the Three Powers want to see Brazil grow with greater social justice, it would be desirable for the authorities to avoid a fiscal crisis in the states from 2023 onwards. , therefore, to the country.
*She holds a PhD in economics from FGV EPGE, economic secretary of Goiás, vice president of Comsefaz and was a member of the board of directors of Cade
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
